From Stopwatch to Smartphone: The Evolution of Management Consulting

Abstract This chapter traces the historical development of management consulting from its origins in the late 19th century to its current role in contemporary organizations. Beginning with Frederick Winslow Taylor’s scientific management and Arthur D. Little’s early consulting firm, the chapter explores the expanding scope and influence of both external and internal consultants through successive economic, technological, and social transformations. Key milestones include the formalization of consulting during the interwar years, the wartime expansion of the field in the 1940s, and the rise of strategic and organizational development consulting in the postwar decades. The chapter highlights the increasing professionalization and strategic integration of internal consultants, particularly from the 1980s onward, as they moved from efficiency experts to critical agents of organizational change. It also examines the emergence of digital transformation, sustainability, and hybrid consulting models in the 21st century. The chapter concludes by outlining implications for future research and practice, emphasizing the evolving boundaries, roles, and value propositions of consulting in an increasingly complex and dynamic global business environment.